Science Applications International Corporation Common Stock (SAIC)

Days of sales outstanding (DSO)

		Feb 2, 2024	Nov 3, 2023	Aug 4, 2023	May 5, 2023	Feb 3, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	May 1, 2020	Jan 31, 2020	Nov 1, 2019	Aug 2, 2019	May 3, 2019
Receivables turnover		8.28	7.48	7.90	—	8.10	7.02	7.17	6.73	7.20	6.54	6.73	6.93	7.24	6.54	6.48	—	5.80	—	—	—
DSO	days	44.08	48.79	46.19	—	45.04	52.00	50.94	54.25	50.68	55.82	54.25	52.69	50.41	55.82	56.30	—	62.88	—	—	—

February 2, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.28
= 44.08

Days Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO value suggests that a company is more efficient in collecting its accounts receivable, while a higher DSO value indicates potential issues with collections or credit policies.

Analyzing the DSO trend for Science Applications International Corporation Common Stock reveals some fluctuations over the past few quarters. The DSO values ranged from a low of 44.08 days to a high of 62.88 days, with some quarters showing missing data. This variability suggests potential challenges in the company's accounts receivable management.

It is important to note that a DSO value significantly above industry norms may indicate potential issues with credit policies, customer payment behaviors, or invoicing processes. Conversely, a consistently low DSO may signify efficient collection practices and strong working capital management.

Overall, investors and stakeholders should closely monitor Science Applications International Corporation's DSO trend to assess the company's ability to manage its accounts receivable effectively and maintain healthy cash flows. Further analysis of the underlying factors driving DSO fluctuations can provide insights into the company's financial health and operational efficiency.